In my experience of London, which is the only city I can vouch for that comes under this "draconian" legislation, there are simply too many venues. A surplus of venues leads to an overwhelming amount of choice in events, and consequently, audiences spread thinly between all of them.
However irritated by this phenomenon I become, I still believe regulation of culture is a despicable act. If I'm honest, my irritation over too much choice stems from my own sparsely populated audiences.
Who has anything to say on this matter?